China Airlines clarifies pay hikes rumors

TAIPEI (The China Post) – China Airlines Employee Union held a protest at the corporate headquarters on Jan. 21, claiming that the distribution of last year’s revenue among staff was unfair.

The revenue hit a record-high NT$170.8 billion in 2018. Although rumors said that senior officials would receive a pay raise of up to NT$35,000, junior staff only received NT$700.

In response to the union’s claim, the airline said that the company will distribute a NT$10,000 bonus before the Chinese New Year holidays and the increase salaries of junior staff by 2 percent.

Regarding the alleged pay raise of the chairman and general manager, the airline also said that they were not part of the current “package.”

China Airlines added that the revenue of 2018 was lower than expected due to the fluctuating oil price, reduction of cross-strait routes, and competition with low-cost airlines.

Even though the revenue in terms of cargo shipment was considered as high, the overall profitability was lower than anticipated.

Since 2015, the airline has been adding subsidies for ground personnel and increasing aircrew travel expenditure, amounting another 2 billion for personnel cost.

Therefore, by only comparing the profit within the industry and the year-end bonus is actually not fair.

However, the chairman and general manager declared their stands during company meeting that the proposal was meant to set up a sounder system in the long run and to provide better welfare for junior staff.

The rumors on the chairman and general manager pay hikes were eventually unfounded.